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Explain The Difference Between HRM and HRD

HRM refers to managing the human workforce to achieve organizational goals in an optimal way that benefits both employees and the organization. HRD is a subset of HRM that focuses on developing employee learning and performance through training, career development, counseling, and helping employees reach their potential to benefit both the employee and organization. Strategic HRM aligns HR practices with business strategy to achieve strategic organizational goals by ensuring HR strategy supports business objectives.

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1K views3 pages

Explain The Difference Between HRM and HRD

HRM refers to managing the human workforce to achieve organizational goals in an optimal way that benefits both employees and the organization. HRD is a subset of HRM that focuses on developing employee learning and performance through training, career development, counseling, and helping employees reach their potential to benefit both the employee and organization. Strategic HRM aligns HR practices with business strategy to achieve strategic organizational goals by ensuring HR strategy supports business objectives.

Uploaded by

ravimba2008
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Explain the difference between HRM and HRD?

Human resource management is the art of managing human workforce in an organization in an optimum manner which is beneficial to the employee as well as the organization in achieving the organizational goal.

HRD is the multidisciplinary process and management of developing learning and performance to enhance both the individual and the organization.

Human resource development (HRD) is a part of human resource management. it deals with the all round development of an employee within an organization, his career development, training, counseling, updating him with the latest technology, helping him explore his potential and develop his skills which would prove beneficial to both the employee and the organization in achieving the organization goals. it also means allocation of resources for the development of the employee.

Strategic Human Resource Management

Strategic Human Resource Management is the practice of aligning business strategy with that of HR practices to achieve the strategic goals of the organization. The aim of SHRM (Strategic Human Resource Management) is to ensure that HR strategy is not a means but an end in itself as far as business objectives are concerned. The idea behind SHRM is that companies must fit their HR strategy within the framework of overall Business objectives and hence ensure that there is alignment between the HR practices and the strategic objectives of the organization.

Evolution of SHRM
With the advent of new economy industries like IT and the mushrooming of the service sector, organizations all over the world realized that human resources must be viewed as a source of competitive advantage as opposed to treating it much the same way in access to technology or

capital is concerned. What this means is that the practice of HRM is being viewed as something that promotes the business objectives of the firms and not merely another factor in the way the firm is managed.

How does SHRM fit in with Strategy?


With the advent of todays economy where services account for a major share of the GDP and the fact that the service sector is essentially people centric, it is imperative that the people first approach be embraced by the organizations for sustainable business strategy. The practice of SHRM demands a proactive and hands on approach by the management as well as the HR department with regards to the entire gamut of activities ranging from staffing and training and development to mentoring and pay and performance management.

The Way SHRM works


If we take real world examples, many organizations in recent times have dedicated people managers whose sole function is to look after the enabling and fulfilling needs of the resources. This is a marked change from treating people as just resources to treating people as assets. For instance, Infosys states that people are its assets and the famous statement by Mr. Narayana Murthy, one of the founders of the company that the capital of Infosys walks in every morning and walks out every evening has to be taken in this context. Elaborating on this point, one finds that organizations tend to leverage upon the capabilities of the people employed there and ensuring that the human capital is nourished and nurtured as a source of competitive advantage. This translates into a dedicated HR department and people managers in every group dealing exclusively with employee issues as opposed to treating this as a line management function.

Conclusion
The times when management could arbitrarily dictate terms to the employees and tread upon their rights is something that is not relevant anymore. With the ballooning of the white collar workforce, it becomes necessary for organizations to pay more attention to the needs of the

employees more than ever. Finally, the fact that organizations derive their strategy from employees instead of imposing strategy upon them is the essence of SHRM.

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